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re: States Want to Force Online Retailers to Collect Billions in Sales Tax

Posted on 4/18/18 at 8:10 am to
Posted by icegator337
Lafayette
Member since Jan 2013
3755 posts
Posted on 4/18/18 at 8:10 am to
quote:

For a product thought of, created, manufactured or sold outside the state of Louisiana, this state or any state that this applies to should not collect any tax on it as it had nothing do with the processes that go into it.

If it's sold to a Louisiana resident, then yeah the state should collect a sales tax. It's the cost of doing business in the state, like any other product
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
37542 posts
Posted on 4/18/18 at 8:10 am to
quote:

"We're fricking over businesses in this state so bad that consumers are buying things from other states. What to do?"

"Hmmm..what about fricking over the consumers too so that it's fair for the businesses?"

"Goddamn that's brilliant!"


Every state but 5 has use tax and those 5 don't have sales tax either so this isn't a Louisiana issue.
Posted by FCP
Delta State Univ. - Fightin' Okra
Member since Sep 2010
5216 posts
Posted on 4/18/18 at 8:11 am to
FWIW, I heard a report yesterday that said in addition to the thousands of different taxing jurisdictions in the US, there are places where a Snickers bar is taxed differently from a Twix. I can hardly comprehend the complexity facing online retailers trying to comply with the varied and arcane tax laws in 50 states, much less all the different jurisdictions within those states.
Posted by BlackHelicopterPilot
Top secret lab
Member since Feb 2004
52841 posts
Posted on 4/18/18 at 8:12 am to
Sooo...the local shop owner's employee would have to pay income tax on his wages to fulfill that order. Will Amazon, et al, now need to calculate the amount of state income tax paid and make sure they "level the playing field" there, too? Shop owner likely pays tax on inventory...does Amazon, et al, need to pay an equal amount of 'inventory tax' to each state to be "fair"?


silliness
Posted by Scruffy
Kansas City
Member since Jul 2011
78045 posts
Posted on 4/18/18 at 8:12 am to
quote:

If it's sold to a Louisiana resident, then yeah the state should collect a sales tax. It's the cost of doing business in the state, like any other product
But they aren’t doing business in the state.
Posted by BlackHelicopterPilot
Top secret lab
Member since Feb 2004
52841 posts
Posted on 4/18/18 at 8:13 am to
quote:

If it's sold to a Louisiana resident, then yeah the state should collect a sales tax.


JEEBUS!!


What if I buy it in FL (MS? AL?) and drive to LA to use it? The fact that I paid FL some sales tax makes LA feel better? weird
This post was edited on 4/18/18 at 8:15 am
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
37542 posts
Posted on 4/18/18 at 8:14 am to
quote:

FWIW, I heard a report yesterday that said in addition to the thousands of different taxing jurisdictions in the US, there are places where a Snickers bar is taxed differently from a Twix. I can hardly comprehend the complexity facing online retailers trying to comply with the varied and arcane tax laws in 50 states, much less all the different jurisdictions within those states.



This is the problem. Most states are going to enact a $100,000 threshold for collecting tax. That's going to impact small businesses that aren't going to have the capacity or knowledge to collect and remit in remote locations accurately.
Posted by teke184
Zachary, LA
Member since Jan 2007
105190 posts
Posted on 4/18/18 at 8:15 am to
I can understand wanting people to pay taxes on big purchase done to circumvent state tax.

shite like the state of LA sending out bills for a few dollars of sales tax on orders from Oriental Trading Co or deliveries of flowers or chocolate strawberries is just asinine.
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
37542 posts
Posted on 4/18/18 at 8:15 am to
quote:

Sooo...the local shop owner's employee would have to pay income tax on his wages to fulfill that order. Will Amazon, et al, now need to calculate the amount of state income tax paid and make sure they "level the playing field" there, too?


I have no idea what you're even saying.

quote:

Shop owner likely pays tax on inventory.


No they don't.

quote:

does Amazon, et al, need to pay an equal amount of 'inventory tax' to each state to be "fair"?



No one pays tax when they buy something for resale.
Posted by OceanMan
Member since Mar 2010
23419 posts
Posted on 4/18/18 at 8:16 am to
quote:

Maybe businesses should give me a reason to shop with them over amazon.


Like what, price? Those businesses have less resources for you to shop with because their costs are higher. That is the point.
Posted by Scruffy
Kansas City
Member since Jul 2011
78045 posts
Posted on 4/18/18 at 8:16 am to
quote:

It makes things equitable so I'm not sure why you disagree with it.
Because it deincentivises politicians from altering their own tax laws because “it keeps everything equitable”.
quote:

If you don't have a use tax you deincentivize business in your state and state resources are used without any tax.
How does it deincentivise businesses?

And as for state resources that are being used, the point is there are no state resources being used because the product is created, housed, and the employees forming the business function outside of the state in question.

Unless you consider the humans living within a state to be “resources”.
This post was edited on 4/18/18 at 8:18 am
Posted by slackster
Houston
Member since Mar 2009
91874 posts
Posted on 4/18/18 at 8:16 am to
quote:

Further, should I have to pay louisiana sales tax if I purchase something in Europe and bring it back?



Does the consumer use tax apply to this situation?
Posted by Scruffy
Kansas City
Member since Jul 2011
78045 posts
Posted on 4/18/18 at 8:17 am to
quote:

What if I buy it in FL (MS? AL?) and drive to LA to use it?
You should pay LA a fee to use anything you have ever purchased.
Posted by Mike da Tigah
Bravo Romeo Lima Alpha
Member since Feb 2005
61883 posts
Posted on 4/18/18 at 8:17 am to
quote:

If it's sold to a Louisiana resident, then yeah the state should collect a sales tax


That makes no damn good sense whatsoever. If I’m in California on vacation and purchase online shaving supplies from Massachusetts and I’m a Louisiana resident, how much tax should I owe? What if I go into a store in California and buy toothpaste, and since I’m from Louisiana, does Louisiana get a cut?


Posted by fr33manator
Baton Rouge
Member since Oct 2010
135036 posts
Posted on 4/18/18 at 8:18 am to
quote:

If it's sold to a Louisiana resident, then yeah the state should collect a sales tax. It's the cost of doing business in the state, like any other product


So if I buy say a game, online, that is 100% digital...why does the state have a right to tax it?
Posted by madmaxvol
Infinity + 1 Posts
Member since Oct 2011
22488 posts
Posted on 4/18/18 at 8:20 am to
Great...the infrastructure/systems changes will make it easier to eventually institute the Fair Tax and eliminate Federal Income Taxes.
Posted by BlackHelicopterPilot
Top secret lab
Member since Feb 2004
52841 posts
Posted on 4/18/18 at 8:20 am to
quote:

The inventory tax is widely seen by experts as a disincentive to investment, expansion, capital accumulation and growth. Louisiana is one of only 13 states that levy an inventory tax, which is why the state has offered an inventory tax credit since 1991.



So, in order to get an INVENTORY TAX credit..one must CALCULATE the inventory tax owed and then apply for a credit, etc.

Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
37542 posts
Posted on 4/18/18 at 8:21 am to
quote:

That makes no damn good sense whatsoever. If I’m in California on vacation and purchase online shaving supplies from Massachusetts and I’m a Louisiana resident, how much tax should I owe? What if I go into a store in California and buy toothpaste, and since I’m from Louisiana, does Louisiana get a cut?



If you pay sales tax somewhere else you aren't taxed twice, but if you buy something tax free that is taxable in La then you would owe use tax.
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
37542 posts
Posted on 4/18/18 at 8:21 am to
quote:

So if I buy say a game, online, that is 100% digital...why does the state have a right to tax it?


Most states wouldn't tax that.
Posted by cj35
Member since Jan 2014
6153 posts
Posted on 4/18/18 at 8:21 am to
Abolish all 50 states and exist under one unified government entity.
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